TMC NEWS

TMCNET eNEWSLETTER SIGNUP

ZTE: Net Profit May Fall by 90% in Q2

SHENZHEN, Aug 22, 2012 (SinoCast Daily Business Beat via COMTEX) --
An insider disclosed today that dragged by the decline of equipment sales and fierce competition in the terminal market, the net profit of ZTE Corporation (SZSE: 000063 and SEHK: 0763) may shrink by about 90% in the second quarter.

This is the largest decline in net profit in recent eight years. The survey results revealed by an industry insider indicated that the net profit of ZTE came at CNY 223.6 million or USD 35 million in the first half of 2012, declining by 71% year on year. The net profit in the second quarter may come at CNY 72.7 million, dropping by 88.7%.

ZTE gave out a profit warning last month, claiming that the net profit in the first half may drop by 60%-80%. The investigation into ZTE launched in America and Europe also overshadowed the future performance forecasts.

ZTE is the global fourth largest mobile phone manufacturer and fifth largest telecom equipment maker. The company will release its semi-annual report today.